From Dexus to DALT: a $270m logistics deal with GIC fund
Fund manager Dexus is selling a near $270 million portfolio of industrial assets in Sydney and Melbourne into a joint venture it has struck with deep-pocketed Singaporean sovereign wealth fund GIC.
Five of the properties are newly developed at an industrial estate in Melbourne’s west. The sixth is an industrial business park at Botany in Sydney.
The assets will be moved into the Dexus Australia Logistics Trust, an unlisted logistics vehicle which Dexus set up with GIC less than two years ago.
Since the initial seeding of that fund with $1.4 billion in existing industrial property in late 2018, Dexus’ investment platform has swung into action to funnel more assets into the vehicle.
Earlier this month, two industrial properties – a Ford site in Victoria and a cold-store warehouse in NSW – were acquired for the DALT fund in a $173.5 million deal.
The latest portfolio is 91 per cent occupied with an average lease expiry of 7.4 years. It is being sold to DALT for $269.4 million on a passing yield of 5.3 per cent.
The deal gives DALT, in which Dexus has an interest, access to a portfolio of properties off-market and delivers on its active acquisition and development mandate.
“These acquisitions continue to build on the Dexus Australian Logistics Trust’s strategy to acquire high quality and well-leased assets that deliver favourable total returns,” said Deborah Coakley, executive general manager for funds management at Dexus.
For Dexus, the transactions will add to its trading profits over the next two years as the assets are progressively sold down into the unlisted fund.
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